1/9) Here is my prediction on the next steps with @CelsiusNetwork Chapter 11. I will update you if my opinions change. Come back at the end of this process & judge my forecasts.
2/9) Like @investvoyager the debtor will release a reorg. plan that won’t get past regulators & regulators will file motions to reject the plan as it will involve $CEL & assume #DEX makes it exempt from securities laws. You may want it, but regulators don’t. They will object.
3/9) This will drive the vultures into a bidding process where the vultures will try & buy the assets we paid for without our consent & FTX & TradFi will give us pennies on the dollar. It will be a lot worse for creditors than @investvoyager due to size of hole.
4/9) Creditors will vote against it & we demand a reorg. plan organized by the @CelsiusUcc that complies with securities laws & puts creditors first that looks similar to #DepositorsFirst strategy I originally presented to @CelsiusNetwork prior to Chapter 11
5/9) I am happy to speed up by working with @CelsiusNetwork at Stage 1 & create a mega reorg. where @CelsiusNetwork assets are used for creditors with securities compliance from @BankToTheFuture & lending compliance from @SALTLending & you get revenue securities, equity & debt
6/9) If #Celsius want to play the game, burn more cash & risk Chapter 7 then we will wait till Stage 3 after creditors reject the bid & opt for community reorg. headed by @CelsiusUcc if @CelsiusNetwork play the game for too long, but it will cost us a lot of money & risk.
7/9) IMHO - best & fastest path is object to exclusivity extension if we don’t see a compliance-centered reorg. from @CelsiusNetwork that gives creditors benefit to all assets plus equity in a compliant company. We can then skip the bid circus & move to step 3 before cash burnt
8/9) How much do we burn given that @CelsiusNetwork runs out of funds by end of year & regulators won’t let them sell our assets (A good thing as we want them to be used for us) whilst examiner releases pre-petition scans that risk forcing Chapter 7 cases.stretto.com/public/x191/11…
9/9) We have to win this game for the sake of all victims. Avoid Chapter 7. Reorg. in a way that regulators are most likely to agree to & ensure all #Celsius assets are used to benefit creditors only. Give creditors equity in a promising compliant company that can survive.
Got questions? What will happen this week? Set a reminder for my upcoming Space! twitter.com/i/spaces/1zqKV…
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#CELSIUS HEARING LIVE: #SEC making their appearance for the record. K&E giving an update on disclosure statement objections. UST & debtors will move objections to confirmation statements. Earn Ad Hoc amended reservation of rights. K&E say $CEL should not be a disclosure issue.
#CELSIUS HEARING LIVE: @FahrenheitHldg needs $5m expenses covered & requesting approval today. No objection. Ferraro's declaration was admitted as evidence. @CelsiusUcc supports the plan and wants to start soliciting the plan. Discussing governance requests by Earn Ad Hoc
@FahrenheitHldg @CelsiusUcc #CELSIUS HEARING LIVE: @CelsiusUcc is commuting to a board with Earn Ad Hoc members & members of #UCC - no decisions made yet. UCC commuting to a fair board selection process. UCC confirming Toggle is an emergency backup transaction only, not a new plan. Earn & Loan Ad Hoc will… twitter.com/i/web/status/1…
OK. Had some time to read the #SEC charges against #Binance.
First, I believe they are trying to get ahead of any issues rather than waiting for the issues to cause a blow up like FTX / Celsius. SEC has learnt from mistakes. I’m not staying Binance will blow up as they probably… twitter.com/i/web/status/1…
ALLEGATION:
Binance publicly claimed that U.S. customers were restricted from transacting on Binance dot com, Zhao & Binance in reality subverted their own controls to secretly allow high-value U.S. customers to continue trading on the Binance dot com platform.
The SEC alleges that, while Zhao and Binance publicly claimed that #Binance US was created as a separate, independent trading platform for U.S. investors, Zhao and Binance secretly controlled the Binance US platform’s operations behind the scenes.
Joint agreement between Celsius/@CelsiusUcc to have W&C/UCC pursue & litigate the constructive fraudulent transfer/conveyance and similar claims held by LLC against CNL. All to push towards setting what creditors & shareholders own cases.stretto.com/public/x191/11…
TL:DR Pre #Celsius Chapter 11 Court Hearing Updates:
Ignat Tuganov, via counsel, has concerns related to the UCC @CelsiusUcc being the representative for the class claim motion. He wants more specifics related to amount of, voting rights related to, and possible settlement conditions for the class claim. He is concerned about the… twitter.com/i/web/status/1…
The UCCs omnibus reply to the other parties regarding their class claim motion. They largely reiterate and expand on their previous reasonings for the class claim, countering the series B preferred objections along the way. They have also included language in the proposed order… twitter.com/i/web/status/1…